Tender result and agreement with investor consortium to give Citigroup approximately 97.5% shareholding in KorAm Bank
Seoul, Korea — Citigroup (NYSE: C) announced today the successful completion of its public tender for the outstanding shares of common stock of KorAm Bank Co., Ltd. (KSE: 016830.KS), which, together with shares acquired from an investor consortium, will give Citigroup an overall shareholding of approximately 97.5% in KorAm Bank.
The tender closed at 3:30 pm today, Korea time, with approximately 60.9% of the outstanding shares of common stock of KorAm Bank validly tendered and not withdrawn prior to the expiration of the tender offer for a price of KRW 15,500 per share in cash. Citigroup has accepted these tendered shares for payment. Citigroup has also agreed to purchase from an investor consortium led by The Carlyle Group and JP Morgan Corsair II, 36.55% of the shares of KorAm Bank at the same price, in a transaction that is expected to be completed on May 4, 2004. The total purchase price for the combined tendered and acquired shares of KorAm Bank is approximately KRW 3.07 trillion ($2.6 billion)*.
The tender offer and the purchase of 36.55% of KorAm Bank’s shares from the consortium were subject to at least 43.45% of KorAm Bank’s shares being validly tendered, resulting in Citigroup’s ownership of at least 80% of KorAm Bank’s outstanding shares.
About KorAm**
KorAm Bank (KSE: 016830.KS), has a deposit base of KRW 25 trillion ($21.4 billion) and local branch market share of 7.6 percent based on revenues. It services more than 6 million retail banking customers through 222 domestic branches and 471 automatic teller machines. Its client base includes approximately 10% of the affluent population of Korea. KorAm Bank’s credit card operation services 3.3 million card accounts. KorAm Bank’s corporate and investment banking businesses services 400 top tier local corporations and more than 5,300 small and mid-size enterprises.
About Citibank Involvement in Korea**
Citibank N.A. was one of the first foreign banks to establish a presence in Korea. With local assets of KRW 10.4 trillion ($8.9 billion) and KRW 355 billion ($303 million) in revenues, Citibank N.A. Seoul Branch serves a broad base of corporate and consumer businesses in Korea. Citibank N.A. Seoul Branch has approximately 800 employees and 12 consumer branches in 3 cities in Korea, as well as a longstanding tradition of active community involvement and support in Korea.
About Citigroup
Citigroup (NYSE: C), the preeminent global financial services company which has 200 million customer accounts and does business in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at www.citigroup.com/.
Certain statements in this document are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup’s filings with the Securities and Exchange Commission.
*U.S. dollar amounts based on KRW 1,173.3 = U.S. $1.00, the exchange rate as of close of business in Korea on April 30, 2004.
**KorAm's numbers are under Korean GAAP and Citigroup's are under U.S. GAAP.
